HomeMy WebLinkAboutEDA MIN EXEC 11-13-12ECONOMIC DEVELOPMENT AUTHORITY" (EDA)
MINUTES OF THE EXECUTIVE SESSION OF'
NOVEMBER 13, 201:2 IN CONFERENCE ROOM I
The Executive Session, meeting was called to order at 6:35 prn by Chair Peterson.
Members Present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, Gerry Herringer, Bobby
Williams andTamniera Dielim (arrived at 6:45).
Members Absent: Marlaine Szurek
Staff Present: Walt 1"-ehst, Scott Clark, and Sheila Cartney
Also preserit: Bob Lindahl, attorney from Kennedy & Graven
Pledge of Allegiance recited
Discussion on Purchase of 3919-3927 Central Avenue Property
Clark reminded members that any discussion or comments must be limited to this issue only.
Clark gave a history on the attempts the I..,IDA has taken to buy this property. He indicated that
staff conducted a walk-thru of the property and it is vacant, they are also in the process of
cleaning tip the outside area in the back.
Nawrocki questioned how are we sure the grocery store doesn't still have a lease? Lindahl
responded because the seller indicated there are no leases as part of the negotiation and there is a
contingency in the Purchase Agreement that they have not entered into any new leases or other
purchase agreements have been signed.
Na%vrocki stated that the purchase price is $905,000, estimated demolition $ 100,000 and $50,000
professional services, the county value is $678,000 he questioned why we are paying 50% more.
Clark responded we are paying market rate not tax rate.
Ilerringer commented that he has heard that the former grocery store owner was mad at the city;
lie questioned how much time can go by before lie can come back to the city to claim relocation.
Lindahl explained that the grocery store is not relocating and did not occupy the property when
the city entered into the purchase agreement with the owner so there are no grounds for
relocation. Ile is not guaranteeing this but thinks the city has a good case.
Williams stated that he is all for this and the Right of First Refusal is a good thing.
Felist commented that the Anoka County Levy is a good thing for this purchase.
Nawrocki stated that the contamination on this property makes development difficult and he is
opposed based on price and cost.